RAC Franchising FAQs

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Rent-A-Center Franchising has successsully converted many former independent dealers to the RAC Franchise Alliance and has aggressive plans to continue. Independent dealers whose stores align with our strategic initiatives and share our values will be considered. In many cases we are able to buy/sell/swap stores with dealers and increase their per store revenues immediately.  With roughly 2,900 existing stores, the various scenarios we can present simply cannot be matched by any other RTO company nationally.

Rent-A-Center is a SBA-approved franchise offering making it eligible for SBA loans for qualified franchisees. SBA-qualified concepts can be found on www.franchiseregistry.com.

Losses from not being able to recover merchandise or damage average only 4.8% (See ITEM 19 of RAC FDD). Many new to the RTO business find this number surprisingly low, but once you understand the various options customers have as opposed to "defaulting" in a traditional credit transaction, it is easy to understand. Great training, proper account management and flexible consumer options, such as RAC's "Payment Freeze Assurance" help to keep losses low.

America's top franchise brands are members of the IFA, which is the franchise industry's trade association. Within the IFA, brands across various segments from food, hospitality, retail and more share best practices on how to build and sustain a great franchise organization. Rent-A-Center executives are highly involved with the IFA's ongoing educational opportunities to keep up with the best practices in franchising.

On average, our stores are approximately 4,500 square feet. Our business model is scalable -- successful locations could vary in size.

Rent-A-Center has longstanding relationships with a number of respected name-brands, including Samsung, Whirlpool, Ashley Furniture, SONY, Kenmore, LG, Microsoft, Nintendo, Serta, HP and more.

Because our focus is on multi-unit franchising, you should have a minimum of $300,000 in liquid assets and $750,000 net worth to launch your new Rent-A-Center locations. Conversions of independent RTO stores will be assessed primarily on existing store revenues.

The initial franchise fee is $35,000 (conversion of an independent RTO store is reduced to $25,000). The royalties range from 4 to 6 percent of gross revenue and the National Advertising Fund contribution is 3 percent of gross revenue. In one of the more rare royalty structures in the franchise community, your RAC royalty % can actually go lower as your store count and revenues increase.

A summary is provided in our Free Franchise Report available in the top right hand corner of this web page. All full breakdown of earnings can be found in our current Franchise Disclosure Document (ITEM 19). Here we show a detailed breakdown of revenues, expenses and profit across all our corporate owned locations.

Territory availability is determined by a number of factors. Call us for specific information.

Our outstanding training program is dedicated to educating new franchisees on running their businesses efficiently. For multi-unit franchise owners, we strongly encourage the hiring of experienced rent-to-own industry professionals. In circumstances whereby you are offered an existing RAC corporate location, you will have the opportunity to retain the trained RAC personnel and access to ongoing training.

Not necessarily -- depending on the strength of the managers in your various locations owners may not need to live in the same town. Since most of our owners are multi-unit owners we seek to find a geographic span of control conducive to operational success.

From the date you sign a franchise agreement, the average amount of time until opening is 3 to 6 months on a new location. The conversion of an independent RTO store or the acquisition of an existing RAC company store can happen in as few as 30 to 45 days from the signing of your franchise agreement.

A RAC-branded franchise location with a recurring revenue stream can be a valuable asset. Possible buyers can include: Rent-A-Center Inc., and other successful RAC franchise owners or entrepreneurs seeking to enter the RAC franchise system through acquisition.

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